Key World Stock Markets Briefing
$DIA, $DAX, $OIL, $USO, $GLD, $SLV
Commentary: Most of the world markets have been trading in narrow ranges, and Monday was not an exception but sharp moves may be seen by 2-H of this week, as the money flow adjustments come into effect before the Fed Chair Yellen’s speech in Jackson Hole on Friday, 26th August.
It is the 11th day for DJIA at 18529.42, -0.12% trading in the narrow range of 18450-700, indicating deeper volatility contraction and a good mark for sharp moves in the coming sessions. A probable trigger for breakout from this range could be the Janet Yellen speech from Jackson Hole, WY Friday.
DAX at 10494.35, -0.47% tested the 1st resistance of 10650 but failed to rise above it. A clear break from the range of 10450-650 will determine the near term trend in the next couple of sessions. Bias is Neutral in here.
Nikkei at 16561.20, -0.22% needs a breakout from its 3-day old range of 16350-650 to set the trend direction near term. The Bias remains slightly Bullish.
Shanghai at 3096.57, +0.38% is finding support at 3080 for the last 3 sessions and now a break above 3115 may signal a resumption of the uptrend for targets to 3160-80.
Nifty at 8629.15, -0.44% has been stuck in the range of 8600-700 for the last 5 sessions. Unless a break above 8700 is seen in the next 1-2 days, chances of a break below 8600-8550 increases.
Crude Oil, Gold & Silver markets
The sharp bounce in US Dollar (.DXY) Index (94.84) has affected the precious metals markets more than expected, as Iraq’s statement for an increase in output by 5% has hit Crude Oil.
Gold at 1333.51 is testing the lower end of its near term range 1330-60, a break below which it may push it 1310-1300.
Silver at 18.885 has broken down below its major support at 19.20. With a strongly rising Gold-Silver Ratio (70.60) threatening to rally on, Silver must stay above the long term support of 18.55-45 to avoid seeing more Southside to 18.00.
Brent Crude at 50.10 needs a pause to refresh after the near vertical rally seen in the last few sessions and may create a range in 48.00-51.00 in the next few days. Similar range can be seen for WTI Crude Oil at 48.53 inside 46.00-49.00.